Intracity logistics startup Porter has raised INR 750 Cr (approx $100 Mn) in its Series E funding round led by Tiger Global Management and Vitruvian Partners.
The round also saw participation from existing investors Sequoia Capital India and Lightrock India.
The startup plans to use the capital for acquiring talent and expanding operations to enter 35 cities of India by 2023.
Founded in 2014 by IIT alumni Pranav Goel, Uttam Digga and Vikas Chaudhary, Porter offers economical, efficient and reliable logistics solutions. The startup does so by leveraging technology in the supply chain and empowering partnered drivers.
Porter claims to have served over 50 Lakh customers in 13 cities and currently boasts of 2 Lakh delivery partners.
Through Porter, delivery partners have received flexible working hours, increased earnings and choice to select the number of deliveries. Porter also offers perks such as discounted insurance and fuel costs.
So far, the startup claims to have facilitated over 3.5 Mn deliveries. It claims to be asset-light logistics with a negative working capital cycle. Porter further claims that its USP is that drivers earn 30% more, customers save 20% on logistics costs.
In 2018, Mahindra Group-owned logistics marketplace SmartShift had merged operations with Porter. For this arrangement, Mahindra had invested $10 Mn in Porter. Prior to this, Porter had raised $5.5 Mn in a Series A round of funding from Sequoia Capital, Kae Capital and other investors in 2015. In 2020, Inc42 exclusively reported that Porter had raised INR 140 Cr in Series D round led by Lightstone Global Fund.
Currently valued at $43 Bn, the unorganised intracity logistics tech market (popularly known as the movers and packers market) is crowded with several individual trucks and tempo owners. Some startups carving a niche in the unorganised marketplace include Shift Freight, Blowhorn, COGOS, among others.
India’s logistics tech sector has produced four unicorns — Delhivery, Rivigo, Blackbuck and Moglix The innovations and investments can be attributed to the rise of ecommerce, distribution for online platforms and hyperlocal deliveries.
The Indian government has also recognised the need for stronger technology-led interventions in its Economic Survey 2020-21. One of the suggestions includes the use of blockchain for real-time truck/package monitoring for the increasingly critical logistics sector.